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    The 2012 Digital Marketer:Benchmark and Trend Report

    Empowering meaningful connections with your customers

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    Foreword

    As I sit down to write this foreword, I survey my desktop; both computer and physical.

    I receive information from my laptop via email, the Web, search, Twitter feeds, Facebook and

    LinkedIn. On my desk, I have an iPhone and an iPad both delivering the same information

    via text, personal email and a variety of apps. Finally, I have a stack of physical mail: catalogs,

    conference flyers and research reports. While I (and most of you reading this report) might be

    on one end of the spectrum in the variety of ways we receive information, consider the vastpermutations and combinations facing our customers and how they process all of the data

    available in todays world.

    Faced with the complexity of marketing in a digital world, it becomes easy to obsess over

    the latest technology to track and analyze the effectiveness of an ever-increasing number of

    channels. With all the data available to us, have we lost sight of our real objective? Behind all

    of our charts, metrics and algorithms are individuals, each with their own specific preferences

    in consuming marketing messages. How do we most effectively connect with our most

    valuable asset, our customer?

    In this years 2012 Digital Marketer report, we have a fresh perspective. While we have the

    same great data to share with you about email, search, social, mobile and cross-channel

    usage, we believe your analysis should start not with a technology or a channel, but with a

    new obsession, a deeper understanding of your customers and how they live and consume

    information in this digital world.

    Whether youre reading this report digitally on your laptop or tablet, or perusing a printed

    copy which now resides on your physical desktop, were excited to share the data that we

    have available at Experian Marketing Services to fuel your customer obsession.

    Bill Tancer

    General Manager, Global Research

    Experian Marketing Services

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    Table of contentsIntroduction: customer obsession ...................................................................... 1

    Customer obsession ..............................................................................................................1

    Following the customer across channels .........................................................................3

    Creating a customer engagement framework .................................................................4Innovating along the Marketing Sophistication CurveSM ..............................................6

    Understanding the marketing technology ecosystem ..................................................8

    Data: meet the New American Consumer .......................................................11

    Flavors of data .......................................................................................................................11

    Identify and address key problems with data ................................................................12

    Insightful data around a New American Consumer ....................................................12

    American Royalty: the top 1% ....................................................................................19

    Integration: break down the silos ...................................................................... 21

    Correctly capturing data for integration ......................................................................... 22

    Maintaining clean email addresses ................................................................................ 25

    Collecting data through mobile devices ........................................................................ 26

    Understanding the customer ............................................................................................ 27

    Cross-channel identity resolution .................................................................................... 29Blue Collar Comfort: increased economic confidence ........................................ 30

    Intelligence: innovation through insight .......................................................... 33

    Analytics and insights ........................................................................................................ 33

    Programs, performance and measurement ................................................................. 34

    Response attribution .......................................................................................................... 35

    Campaign management .................................................................................................... 37

    Personalization and recommendations ......................................................................... 38

    Customer intelligence for the election year ................................................................... 40

    Interaction: empower meaningful connections ............................................. 49

    Email: a marketers foundation ................................................................ ................... 53

    Biggest email marketing trends from 2011 .............................................................. 53

    Using email segmentation to reach the New American Consumer ........................ 57

    What email marketers should focus on in 2012 ............................................................ 58Connect ............................................................................................................................ 58

    Engage ............................................................................................................................... 63

    http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-
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    Social: essential to the marketing playbook ............................................................. 79

    The state of social media ....................................................................................................79

    Demographic shift in social media users ...................................................................... 80

    More time online, more variety in social media sites ...................................................81Brands and social media sites ......................................................................................... 82

    Pinteresting trend in social media ................................................................................... 84

    Social media marketing goes mainstream ................................................................... 86

    Facebook advertising: likes, fans and sales ..................................................................88

    Facebook data, the source of whats next in customer insight and

    user experience................................................................................................................ 92

    Planning for social data integration: its not as scary as it sounds .......................... 93

    Mobile: usage on the rise .............................................................................................. 95

    The mobile Internet revolution and opportunities for brands .............................. 95

    A mobile nation .................................................................................................................... 95

    Mobile activities on the go: a lot more than talking ..................................................... 96

    M-commerce: mobile phones are quickly becoming an indispensable

    shopping tool.................................................................................................................... 99

    Rolling the Dice: blend of optimism and pessimism .........................................101

    Insights on mobile activities from around the world .......................................... 102

    Mobile Internet users are more connected and more receptive

    toward advertising ...................................................................................................... 103

    Digital advertising, search, etc .................................................................................. 105

    Display advertising: turbo charge it with customer data ......................................... 105

    Multi-channel marketers: introducing addressable advertising ............................ 105

    Harnessing big data .......................................................................................................... 107

    Measuring digital campaigns ..........................................................................................110

    Continuing to evolve in digital advertising ....................................................................111

    Search insights from the 2011 holiday season ................................................112

    Search trends ......................................................................................................................115

    Insights into Hong Kongers online habits in 2011 ...............................................116

    Hispanic Harmony: bilingual and hopeful ............................................................118

    Increasing conversion by improving site usability ......................................................119

    Using product relevancy to increasing conversions ................................................. 122

    Six easy ways to learn why Web visitors arent buying 125

    http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-
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    Subsections of the report

    This report contains five different subsections within its content. Know how

    to identify them with this key:

    Holiday data sections are identified with the present icon and

    provide information to help prepare for the 2012 holiday season.

    Segment Profiles are identified with the person icon and take

    a deep dive into a customer segment.

    The International Insight sections are identified with the globe

    icon and include data from around the world.

    Case studies are results based on experience: these sections will be

    portrayed with this purple treatment.

    Tips: quick guidelines to help marketers better plan their strategies.

    Tips will be presented with this treatment.

    Sidebars: added learnings to keep you marketing forward. These sections will

    be displayed between the double gray bars.

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    Customerobsession

    INTRODUCTION

    Customer obsession

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    Introduction: customer obsession

    Key findings

    Forty-six percent of marketers chose multi-channel coordination as

    one of their biggest marketing challenges of the last 12-18 months.Always optimize the customer experience by listening, analyzing,

    planning and speaking.

    Cross-channel marketing requires an integrated approach across

    company silos and disparate systems.

    Never forget that the customer is at the center of the

    marketing universe.

    Customer obsession

    There has been a paradigm shift in the way consumers and brands interact.

    Customers have more choices in terms of what they buy, from whom and

    how often, while brands have more ways to connect and stay connected

    than ever before. The most successful marketers understand this new

    reality and have adjusted their communication strategies over the last few

    years to keep pace.

    Fortunately, were well past bifurcating the customer and instead, taking

    a more holistic view of the marketing ecosystem and our customers.

    By putting greater emphasis on identifying the purchase drivers of our

    customers along with their channel preferences, marketers have become

    increasingly adept at reaching customers across channels with integrated

    messages and highly personalized communications. We believe that this

    type of marketing has become table stakes, and those brands that ascend

    to the top will be, quite simply, customer obsessed. Savvy marketers willlisten carefully to what their customers say what they like, what they

    dont like and especially what they tell others. They will empower their

    customers to become active brand advocates and enable them to spread

    the word about the brand far and wide by giving them what they want every

    time they interact.

    These smart companies will also let customer data help guide their

    marketing decisions. Myriad information about individual customersis literally at the marketers fingertips for analysis and action.

    Understanding and linking all of this data to inform campaign strategy

    will become an increasingly critical task for marketers who are

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    Customers lives are ever changing. Sometimes in predictable ways such as

    marriage, having children or retirement, and sometimes in less predictable

    ways such as divorce, job promotions, religious views or shifting priorities.

    Anticipating and understanding these milestones and unknown changes in

    our customers lives is the key to staying not only top of mind but important

    to them.

    The 2012 Digital Marketer: Benchmark and Trend Report looks at many

    critical marketing concepts, strategies and tactics, while taking a deep

    dive into data insights and the integration of communication channels like

    email, social, mobile, display advertising, search, direct mail and more.

    Most importantly, we focus on the customer, the center of the marketers

    universe, the object of their obsession and the key to marketing and

    financial success.

    Matt Seeley

    Business Leader Group President

    Experian Marketing Services

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    As marketing complexity continues to increase, the simplest way to manage

    progress is to focus on the customer. What will improve the customer

    experience and journey? How can marketers better serve the needs of

    customers? A customer-centric approach makes it imperative to strengthen

    two disciplines above all else:

    Customer insights understand both the persona and the person

    Relationships consistent, coordinated, sustained interactions

    and engagement

    In this report youll notice the absence of consumer and instead see a

    consistent reference to customer. If customers are deserving of more

    meaningful and relevant interactions then so it is every consumer is a

    potential or existing customer. As such, customers want brands to listen

    to them, understand them better and know them. Paying closer attentionto their behaviors, providing platforms for angst or advocacy feedback

    loops and social expression, and appreciating the certainty of change will

    all go a long way in strengthening the ever important and highly coveted

    gesture of loyalty and advocacy.

    Following the customer across channels

    Media consumption is fragmented, so marketers must chase customers

    across multiple channels, utilizing campaigns that are increasinglydifficult to integrate. Its no wonder that integrated campaign management

    was one of the top three biggest challenges for 38% of marketers.1

    Investing in platforms to aggregate audiences helps, but there is no

    simple or comprehensive way to reach across traditional, digital, mobile

    and social channels.

    In addition to being harder to engage, todays customers are more

    demanding of their brands. They expect brands to listen; interact; behave

    well; and, most critically, be relevant. Dont waste my time is thecustomers mantra because they are busier than ever, have more choices

    than ever and get bombarded with more messages than they can possibly

    make sense of.

    A typical path in the customers journey helps illustrate the challenges

    of cross-channel, or multiple touch-point marketing. Effective marketing

    strategies must connect many dots in order to lift sales. Each stage of the

    customers path to purchase requires a different tactic to plan, manageand execute.

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    Imagine a customer is interested in guitars and related musical equipment

    but is unaware that a particular brand offers a new kind of tuning device.

    How would this prospective buyer and brand connect? How would they

    find each other? The customer may search online for other products in the

    category or browse content on related topics. Moreover, its likely that the

    customer would be discussing music with friends on a social network or

    sharing a video.

    What if that customer then searches online, reads reviews and becomes

    not only a satisfied user, but also a delighted customer? How should the

    brand turn this enthusiasm into advocacy and turn this single transaction

    into five more? A variety of new techniques and technologies is required to

    address this cross-channel, digital path to purchase.

    Creating a customer engagement frameworkRelationships are built over time through a series of customer engagements

    and experiences. If the experiences are mostly positive, the relationship

    grows stronger, and vice versa. To engage effectively with customers across

    channels and over time, brands must carefully plan how to advance a

    customer through each stage of his or her life cycle. There is a consistent,

    repeatable approach all marketers can employ to optimize the customer

    experience: the customer engagement framework. We view this as a four-

    step methodology that flows like this:

    1. Listen Recognize customers and their interactions across an ever-

    expanding range of traditional, digital, mobile and social channels

    2. Analyze Develop new insights about customer behavior and

    preferences using advanced tools and methods.

    3. Plan Leverage best practices and strategies for managing campaigns

    and marketing programs.

    4. Speak Deliver personalized interactions using state-of-the-art tools for

    coordinated, cross-channel experiences.

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    The need for cross-channel optimization is evident in the declining

    performance of traditional media and marketing methods. According to

    Forrester: Media consumption is increasingly fragmented. Most consumers

    are no longer exposed to marketing messages in a vacuum; they often

    interact with multiple media simultaneously. In this progressively complex

    environment, marketers need to understand precisely how efficiently their

    various marketing channel budgets are reaching their customers.2

    Moreover, marketers are being held accountable for return on investment

    (ROI) on marketing spend. They need to recalibrate their systems of

    measurement to know whats working and whats not in this complex, multi-

    channel mix. The attribution of response by channel and across channels

    is a huge challenge, yet measurement is essential to both motivating and

    guiding innovation.

    Learning where a company falls on this continuum is the first step. Once

    there is an understanding of the current level of marketing sophistication,

    an actionable roadmap can be developed to enable optimization, drive

    innovation and track progress. Specific initiatives can be undertaken to

    develop or enhance the people, process and technology that compose the

    marketing technology ecosystem.

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    Understanding the marketing technology ecosystem

    Elevating a companys level of marketing sophistication requires that

    marketers not only have all the necessary puzzle pieces, but also a

    clear understanding of what the picture on top of the puzzle box looks

    like. Knowing what the end result must be provides context and allows

    marketers to efficiently and effectively assemble the component pieces.

    The graphic below depicts a high-level view of the marketing

    technology ecosystem.

    Marketing technology ecosystem:

    improve capabilities and drive quantifiable results

    Dataintegration

    Datacapture

    Search

    Dis

    pla

    y

    Media

    Image

    Experience

    DirectSy

    ndicatio

    n

    Monitoring

    Community

    Wordofm

    outhSc

    annin

    g

    Apps

    Mobileweb

    SMS

    Email

    Web

    Traditional Digital Social Mobile

    Personalization

    Cam

    paignmanagem

    ent

    P

    rogra

    mmanagem

    entA

    nalytics

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    The customer is at the center of the marketing universe the emergence

    of the New American Consumer makes this fact truer than ever. Marketers

    must establish mechanisms and capabilities to capture and integrate all

    cross-channel data available on the customer. This linked and enriched data

    drives analytics that complete the 360-degree view of the customer, and it

    provides insight allowing marketers to devise strategic marketing programs

    and individually relevant campaigns. Targeted, highly personalized

    interactions then can be delivered within the context of appropriate

    marketing channels across traditional, digital, mobile and social media.

    Finally, consider how marketers can create the infrastructure necessary to

    support all the above-mentioned activities. The easiest way to break this

    down is to deconstruct the marketing technology ecosystem wheel into a

    customer intelligence platform comprised of critical marketing information

    and key hubs of functionality. Built on a foundation of data, this hosted,end-to-end marketing solution leverages a three-hub approach to capture

    and integrate data from across channels (integration), understand how to

    maximize customer value (intelligence), and optimize customer interactions

    with context and relevance (interaction). Read on to learn more about how

    the hubs intersect and interact to help digital marketers succeed in 2012

    and beyond.

    Marketing technology ecosystem: improve capabilities

    and drive quantifiable business results

    Data

    Integration

    Interaction

    Intelligence

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    MeettheNewAmericanC

    onsumer

    DATA

    Meet the New American Consumer

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    Data: meet the New American Consumer

    Key findings

    Marketing-relevant data still falls into three primary categories:

    customer information, compiled enhancement data and third-party resources.

    The dynamic of the American household continues to morph and a

    New American Consumer is taking shape.

    Twenty-eight percent of marketers noted that creating effective

    targeting profiles was one of their biggest marketing challenges

    last year.

    An increasing percentage of college graduates are returning home to

    live with their parents.

    Households that contain adults and children from multiple

    generations are a mega-trend.

    A study by the National Center for Health Statistics (NCHS) found

    that in 2006, one out of 12 first births were to women age 35 and older.

    Wealthier adults are favoring an urban lifestyle.

    A rich foundation of data is essential to empowering meaningful customer

    connections. Customer information is critical to nurturing relationships

    and driving relevant, coordinated multi-channel campaigns. If there isnt an

    integrated, multidimensional view of the customer that is accessible from

    multiple downstream systems, it will be a struggle to expand relationships.

    Flavors of data

    Despite the rapidly expanding number of information sources andchannels especially from a digital perspective marketing-relevant data

    still falls into three primary categories:

    Customer information point of sale, customer service, Website, email,

    call center, survey research, preferences, social media, etc.

    Compiled enhancement data life events, demographics, lifestyle,

    online, transactions, market research, business, automotive, etc.

    Third-party resources partners, lists, syndicated sources, research,

    segmentation, suppressions, etc.

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    Using a lifestyle segmentation system, like Mosaic USA Consumer

    Lifestyle Segmentation, marketers can key into new customer dynamics

    and anticipate the behavior, attitudes and preferences of their customers in

    order to reach them in the most effective channels with the best messages.

    Here are examples of recent demographic shifts and sociological trends

    that have given rise to four very unique market segments.

    Baby Boomer population adapts to accommodate boomerang children

    Every year, a new wave of college graduates is poised to enter the

    work force. However, these days, before launching what they hope are

    meaningful careers, a large percentage might be knocking on the front door

    of their parents homes looking for a place to live. Welcome to the land of

    Boomers and Boomerangs: a 21st century family segment containing Baby

    Boomers who moved into their homes more than 15 years ago and watchedtheir children grow up and leave the nest, only to have them return. What

    they thought was going to be converted into a home office or an exercise

    room is once again a messy bedroom.

    Compared to U.S. households overall, Boomers and Boomerangs are more

    than four times more likely to contain young adults living with their parents.

    However, not all of these young adults are necessarily recent college

    graduates. Many have previously started out on their own but are now

    seeking the sanctuary of living with mom and dad while attempting to gain

    the traction necessary for making ends meet.

    What impact does this trend have on boomer-aged parents who have been

    making preparations to begin a new phase of life, possibly dependent-free,

    as empty nesters? Here are some key findings that will help marketers

    connect and communicate with this growing market segment:

    The vast majority (85%) of the Boomers and Boomerang parents are

    between the ages of 51 and 65.

    These are very busy households. They are 3.3 times more likely than

    U.S. households overall to have five or more people living at home. The

    increased demand of maintaining a larger household puts added strain

    on the family finances.

    Boomers and Boomerangs have reached their peak earning years and

    have an average household income that is slightly less than $100,000.

    They tend to be price-sensitive shoppers who buy economy cars and off-

    the-rack clothes from discount retail stores.

    Boomers and Boomerangs are voracious media consumers They

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    They are very well-educated and are 1.7 times more likely to have earned

    a graduate-level degree compared to the general population.

    They are very likely to be employed in professional, technical or sales-

    related occupations.

    More than half of these householders have lived in their homes for

    15 or more years. Many may be considering home renovation orremodeling projects to better accommodate their adult-age children.

    There are solid credit ratings among Boomers and Boomerangs,

    making them an attractive target for automotive, home-equity and

    education loans.

    The wide age gap of members found in Boomer and Boomerang

    households translates into divergent Internet activities. They go online for

    banking, retrieving financial information and travel planning, as well as tosearch for jobs, for instant messaging and for gaming. Popular Websites for

    this segment include an astonishing variety, such as CNN, ESPN, Facebook,

    WebMD and Craigslist. Both age groups appreciate the convenience of

    shopping online. With their varied backgrounds, members of this segment

    access the Internet at home, school and work through wireless and mobile

    devices. Still, there are some age-specific activities evident in Boomers

    and Boomerangs: while the parents are still shy about surfing the Internet

    through their cell phones, theres no such reticence among the youngerpeople in the household.

    Multigenerational households throw marketers a curve

    Americans are again embracing the concept of multigenerational family

    living. Whether its the outcome of a failing economy or other economic

    and sociological factors, households that contain adults and children from

    multiple generations are a mega-trend.

    The demographic developments are undeniable. An expanding elderlypopulation has begun moving in with their adult children with greater

    frequency. At the same time, these adult children could be parents of young

    adults themselves who, for a variety of reasons, have decided to move back

    home. In both cases, younger children under age 18 also might be present

    in the home.

    One example of this marketplace trend is the emergence of the segment

    called Sports Utility Families. These are predominately upscale, middle-aged couples with school-aged children living in outer-lying suburbs.

    However, theres a twist to what initially might be described as the

    prototypical all American family These households have a greater

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    Fast Track Couples lead socially active lifestyles. They enjoy going to

    bars, movies, comedy clubs and rock concerts.

    They prefer their vacations to be filled with heart-pounding sports,

    including skiing, scuba diving, water skiing and backpacking.

    Self-described early adopters, they like filling their homes with the latest

    customer electronics and technology.

    The best channel to reach Fast Track Couples is the Internet. They are

    highly receptive to digital advertising via online search and sponsored

    links. Few segments spend more time in cyberspace. They are enthusiastic

    Internet users, going online to simplify their lives. They use the Internet to

    manage their financial affairs, make travel arrangements and check out

    new job, car and home listings. They also use the Internet as their chief

    form of entertainment, downloading music, listening to Internet-only radiostations, watching videos and sharing digital photographs. In addition,

    theyre comfortable telecommuting and shopping online. Having grown up

    with communication on demand, they dont care how they get their Internet

    access. They bounce seamlessly between cell phone, laptop and wireless

    connections. Although they dislike email ads, they do respond to sponsored

    Websites and links especially when doing product comparisons. They

    like shopping for games and software to improve their online experience.

    In a list of popular Websites, its difficult to find any that they dont visit,

    including Facebook, YouTube, Wikipedia, Best Buy and eBay.

    Urban lifestyles gain renewed favor by wealthier adults

    Over the past several decades, a large percentage of Americas most

    wealthy households moved from the inner sanctum of the cities to the

    outlying suburbs. Think McMansions, Hummers and other forms of

    suburban extravagance that reflect the steady migration of the well-to-do

    to the outer reaches of metropolitan areas. However, the tide has changed

    somewhat. Meet the new Jet Set Urbanites. These are in-town sophisticateswho are an affluent mix of singles and childless couples pursuing high-rise

    living and fashionable lifestyles in urban neighborhoods. This segment

    represents a subpopulation of aging Baby Boomers looking for the perks

    that can be found in a city landscape.

    Some key differentiating features of Jet Set Urbanites compared to the

    U.S. population overall include the following:

    Jet Set Urbanites are 9.2 times more likely to have household incomes of

    $250,000 or more.

    With their impressive educations nearly half of household heads have

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    American Royalty: the top 1%

    As the name suggests, American Royalty are those Americans who are at

    the top of the affluence pyramid. In fact, less than 1% of all U.S. adults are

    identified as being American Royalty. They are financially confident, tech-

    savvy and influential. They have the means to travel the world armed withthe latest gadgetry, of course, to make their lives easier, more connected

    and more comfortable. Their love of gadgetry has translated into a need

    for the latest news and rumors from websites like Boy Genius Report,

    MacRumors and Fortunes technology blogs. Not surprisingly, American

    Royalty also enjoy consuming news on their mobile phones, visiting the

    mobile Websites of The Washington Post, US Weekly, BBC and San

    Francisco Gate. American Royalty is active and involved in their community

    as members of many civic, cultural and religious groups. The Internet hasproved to be a highly effective and popular way for this group of connected

    individuals to communicate and socialize with their communities and to

    stay involved.

    As community-oriented as these individuals are, they spend plenty of time

    on the road. Eighty-four percent of American Royalty members have a valid

    passport, and almost three-quarters have traveled abroad in the last three

    years. In the last year alone, 88% traveled stateside, with a majority making

    travel reservations online. When it comes to travel Websites, American

    Royalty can be found perusing the JetSet Report and trendy boutique hotels

    in New York City such as the Hudson Hotel, Hotel Gansevoort and Gramercy

    Park Hotel. Organized travel with a luxurious spin like cruises from Crystal

    Cruises and Regent Seven Sea; and expeditions from Kensington Tours,

    Abercrombie & Kent and National Geographic Expeditions are also popular

    with these customers.

    With all that travel, its no wonder American Royalty members are morethan twice as likely as the average American to say that while away from

    home, its important to have Internet access. That also explains why they

    are 41% more likely than average to surf the Web on their mobile phone and

    74% more likely to email from their phone.

    Whether on the road or at home, the Internet plays an important role in

    the lives of American Royalty. These individuals are 50% more likely than

    average to say that the Internet is their primary source of entertainment

    and just over a third say the Internet is the primary source of entertainment

    for their entire family. American Royalty spends so much time online that

    half of this group says that theyre spending less time reading newspapers,

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    Breakdownth

    esilos

    INTEGRATION

    Break down the silos

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    Integration: break down the silos

    Key findings

    Customers want a personalized, relevant experience, and

    successful interactions hinge on the ability to integrate within andacross channels.

    Forty-two percent of marketers reported that their organizations

    teams collaborate on all marketing programs.

    Fifty-nine percent of companies are collecting mobile contact data.

    Ninety-two percent of businesses feel their contact data is inaccurate

    in some way.

    The digital explosion of new media choices has led to fundamental changes

    in the way marketers must operate. Media fragmentation means mass

    media buying is no longer sufficient. The multitude of competing marketing

    initiatives drives the need to prove a return on investment like never before.

    Customers demand a dialogue across a variety of channels and devices.

    Customers want a personalized, relevant experience, and successful

    interactions hinge on the ability to integrate within and across channels.

    From a departmental standpoint, 42% of marketers reported that their

    organizations teams collaborate on all marketing programs. Only 13%

    reported that they work in totally siloed organizations, which means the

    majority is headed in the right direction.4 Integrating the data ought to

    follow suit.

    Marketing integration

    Teams collaborate onall marketing programs

    Teams collaborate onsome marketing programs

    We are totally siloed45%

    42%

    13%

    So rce E perian Marketing Ser ices

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    Collecting data through mobile devices

    Mobile communications are becoming more important to marketers

    as smartphone usage continues to expand. In fact, according to a

    recent Experian QAS study, 59% of organizations are collecting mobile

    contact data.

    In addition, the amount of information being collected through mobiledevices is on the rise, with financial institutions allowing customers to

    open accounts through online self-service portals and retailers selling

    products through mobile ecommerce sites. With so much data

    accumulating, organizations need to ensure that accurate information is

    collected not only to fulfill requests, but also to market to customers for

    up-sell and cross-sell purposes.

    Organizations should review the pieces of contact information thatcustomers or prospects can input through mobile applications and put

    verification in place to prevent inaccurate data from entering a database

    through the mobile channel.

    There are several different methods for verification. First, point-of-capture

    tools can be leveraged online to validate contact details while an individual

    is still engaged. This validation will interact directly with the customer to

    ensure that all details are standardized and validated while they are using

    the application. The benefit of this type of tool is that information, such asa missing apartment number or street directional, can be corrected and

    gathered from the customer in real time.

    However, some organizations may not want to add that level of verification

    to a new mobile application. An alternative is that information can be

    placed in a holding area and run through a back-office cleansing tool before

    it is entered into the main database. This will allow contact data to be

    standardized and verified, and if information is inaccurate, it can be flaggedand corrected at the time of the next transaction.

    As mobile applications become more important to the marketing mix,

    organizations need to be even more mindful of the need to collect accurate

    data from mobile devices rather than flooding their database with poor,

    unusable data.

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    Understanding the customer

    The success of any marketing campaign depends on a good understanding

    of the person receiving the message. With the digitization of marketing and

    selling channels, organizations need to understand their customer faster

    than ever and be able to make relevant offers in real time.

    That process of clienteling, or using data about an individual customersbuying habits, history and preferences during interactions, is complicated

    to be sure. But one thing is certain: its effectiveness all starts with basic

    contact information.

    Contact information is the basis for any profiling strategy. In fact, according

    to a recent Experian QAS survey, 42% of companies maintain accurate data

    to capitalize on market opportunities through customer profiling.

    However, contact data is woefully inaccurate for most businesses.

    According to the same study, 92% of businesses feel their contact data

    is inaccurate in some way. In addition, 66% of respondents who have

    customer loyalty programs believe their programs were negatively affected

    in the last year due to inaccurate data.

    To ensure that marketers can make relevant offers and engage in

    clienteling, they need to first focus on the capture of accurate contact data.

    Verification can be put in place at the point of entry for mailing address,phone number and email. This ensures not only that companies can fulfill

    orders, but also that marketers can make personalized, relevant offers in

    the future. In addition, marketers can then use contact data to append

    demographic information to make more informed decisions or relevant

    real-time offers to the customer.

    Case study: Casual Male Retail Group establishes interactive, front-end

    address validation

    Casual Male Retail Group was collecting customer contact data at the point

    of sale (POS), but inaccurate addresses led to high returned mail costs,

    poor marketing results and an inability to create a complete view of each

    individual customer.

    Because Casual Male had tried several different tactics for gathering

    address information, including back-end processing and reverse telephone

    append services, the retailer was convinced that interactive, front-endaddress validation was the best option.

    C l M l ifi dd th t d t ll t Th

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    Traditional name and address matching using full name and terrestrial

    address to identify duplicate universes. This can be done at the individual,

    household (surname), address or business level. Flexible options allow

    for adjusting how aggressive the match should be. This type of service is

    commonly used to identify duplication in direct-marketing campaigns.

    Match key creating a key-based representation of each record. It can beas simple as parsing the name and terrestrial address elements to create

    an alpha-numeric key or a more complex hash key that combines elements

    of multiple layers of identity into one string of elements for matching. This

    service is commonly used for identifying overlap between two distinct

    data files or as an additional match in combination with another identity

    resolution service.

    Blue Collar Comfort: increased economic confidence

    Blue Collar Comfort Americans are generally middle aged and upper middle

    class. They live a comfortable life and are often identified as being fiscally

    fit and confident spenders. Like most Americans, the recession has had

    an effect on them, but they now feel that the U.S. economy is rebounding

    and will be better off in the next year than it is now. This confidence has

    trickled down into their own sense of financial well-being, with many BlueCollar Comfort Americans reporting that they plan on increasing their

    spending on household essentials a little more in the next month. If their

    expectations are correct, they might also have some money left over to buy

    that latest gadget theyve had their eye on.

    Gadgetry and electronics, in general, are a weakness for Blue Collar

    Comfort, with members of this group scoring 49% higher than the average

    American for saying, I love to buy new gadgets and appliances. In the

    technology department, more than one-third of this group is classifiedas wizards who cant imagine life without the latest electronics or live

    without the Internet. This mindset also applies to social networks, where

    Blue Collar Comfort is already using recently launched social networks like

    Google+ and GetGlue.

    While traditional media, like television, magazines and radio, are still a

    central part of this groups entertainment, the Internet has had a noticeable

    impact on the way Blue Collar Comfort gathers information and shops.Fully 63% of these Americans say, The Internet has changed the way I get

    information about products and services, compared with 54% of all U.S.

    adults who say the same While online Blue Collar Comfort Americans

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    Innovationth

    roughinsight

    INTELLIGENCE

    Innovation through insight

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    Regardless of the path pursued, ultimately the goal is to deliver one point

    of truth, one common language to accurately and effectively measure the

    marketing program effectiveness.

    Tip: During campaigns, always ask things like: Which channel was most

    effective? Which creative version worked best? Which campaign drove the

    highest response rates? Where did I have the best cost per acquisition?

    Campaign management

    Integrated campaign management was the second most noted challenge

    for marketers who participated in a recent Experian Marketing Services

    survey 38% of respondents were challenged by it last year. Where

    program management is about creating the overall battle plans, campaignmanagement is about loading, aiming and firing the guns. What seems

    to be a point of confusion for many marketers, however, is that the term

    campaign can mean different things depending on the marketers

    focus. For example, a traditional circulation marketer would define it as

    the segmentation and coding of a distribution list, while an online display

    marketer would consider it to be the varying flights of creative that are

    deployed to the preselected publisher sites. As the walls between channels

    continue to erode and eventually crumble, marketers will certainly come tofind a commonality in the term.

    Another way to view campaigns is a visual workflow that depicts the

    various stages, treatments or flights of messages in their relative order.

    More sophisticated tools allow for branching decisions whereby different

    audiences receive a different message based on scoring, firmographic,

    behavioral response or other segmentation scheme. Another aspect some

    of the tools support is the ability to respond to customers. As opposed to

    marketing to a pre-established list, in triggered campaigns, customers self-select into the campaign by an action, like completing a Web registration or

    redeeming a coupon at a POS, at which point they receive a message or a

    series of messages in response.

    Tip:Think holistically. Do marketing programs feel pieced together? Review

    this years marketing programs to determine how to improve future digital

    advertising spend. Plan campaigns and structure them around the anchorsof digital marketing display, search, email, television and social media to

    build a solid communication platform.

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    Case study: European finance house improves customer

    profit with marketing optimization

    Experian worked recently with a well-established European finance house

    that offers a range of customer services through subsidiaries and direct

    marketing. With multiple channels, millions of customers and numerousproducts, the organization was struggling to manage the complexity of

    its marketing campaigns. Management also wanted to ensure they could

    process and deploy new marketing strategies within a strict monthly

    operational schedule while focusing heavily on revenue growth.

    Experians Marketswitch Optimization, which uses mathematical

    techniques to deliver objective decisioning strategies, was deployed to

    solve these multiple challenges. The team used Marketswitch Optimization

    to consider the companys business objectives, customer usage, values,propensities and range of eligible offers, as well as operational constraints

    and budgets, to determine the right course.

    The final solution enabled the company to maximize return from direct-

    marketing activities, increase the effectiveness and sophistication of its

    overall campaign planning, and at the same time make more relevant offers

    to its customers through many channels.

    Marketswitch Optimization is designed for business users and requires noadvanced mathematical expertise. It enabled the finance houses customer

    relationship management (CRM) team to create and evaluate different

    optimized scenarios before committing resources and budgets. The new

    tools and strategies helped the company to:

    Achieve a 23% improvement in customer profit through a combination of:

    Increased effectiveness and efficiency of activities

    More appropriate offers to customers

    Enhance key performance indicators (KPI) transparency and increase

    value-added customer offers

    Change optimized strategies on a monthly basis, with a streamlined

    operational deployment

    Implement campaigns with confidence after gaining an in-depth

    understanding of the impact of changing activities through swap

    set analysis

    Rapidly and flexibly develop new scenarios to react to changes in

    business objectives and product stakeholders requirements

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    Understanding the mindset of the American voter

    Political customer segmentations provide marketers with the ability to

    understand who the voting population is in a very precise manner. The

    segments go beyond merely identifying voters as Republican, Democrat

    or Independent, but rather look at the subsets of each of these groups. The

    profiles below include an understanding of the hot-button issues for the

    voting public, nonpolitical motivations and brands used at above-average

    rates by the segment, providing a more complete understanding of their

    lifestyle to enable better targeted communication and messaging.

    PoliticalPersonas segment profiles

    Super Democrats 17% of registered voters; 40% of registered Democrats

    Demographics Political outlook

    Even male femaleSomewhat or very liberal, Super Democrats

    have far left leaning positions on a variety

    of topics, including the environment,

    healthcare, international, education and

    the economy. They also hold very liberal

    positions on social issues such as abortion

    and legalization of drugs.

    Above average White and Black

    College graduate or more

    Employed

    Average age: 46

    Average HHI: $98,000

    Percent with kids in home: 34%

    Over-indexing brands by PoliticalPersonas segmentDrink Pellegrino-brand sparkling water (Index: 208)

    Shop at Trader Joes supermarket (194)

    Stay at Courtyard by Marriott hotels (180)

    Use Amazon Kindle eBook (179)

    Own a Mac (Apple)-brand computer (178)

    Source: Experian Simmons

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    Uninvolved Conservatives 6% of registered voters; 18% of registered Republicans

    Demographics Political outlook

    Male skew

    Uninvolved Conservatives are not

    particularly engaged in their communities or

    key political topics such as the environment,education or healthcare. They do espouse

    right-leaning attitudes when it comes to

    international issues and finances though.

    Largely White with Asian skew

    Some college

    Employed

    Average age: 44

    Average HHI: $92,000

    Percent with kids in home: 42%

    Over-indexing brands by PoliticalPersonas segment

    Own Stihl-brand garden equipment (208)

    Own Rigid-brand workshop equipment (203)

    Own JVC-brand camcorder (160)

    Own a Blackberry-brand mobile phone (151)

    Eat Bagel Bites-brand frozen snacks (151)Source: Experian Simmons

    Mild Republicans 1% of registered voters; 3% of registered Republicans

    Demographics Political outlook

    Male skew

    Consider themselves somewhat

    conservative. On the fence when it comes

    to issues like healthcare, the environment

    and religion. More conservative on social

    security, international and education, but

    more liberal towards abortion rights and the

    legalization of marijuana.

    Largely White

    College graduate or more

    Employed

    Average age: 47

    Average HHI: $110,000

    Percent with kids in home: 35%

    Over-indexing brands by PoliticalPersonas segment

    Send money via PayPal (Index: 237)

    Eat Stagg-brand chili (212)

    Have U.S.A.A. auto insurance policy (205)

    Use Philips Sonicare toothbrush (195)

    Eat Tillamook-brand natural cheese (194)

    Source: Experian Simmons

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    Ultra Conservatives 17% of registered voters; 52% of registered Republicans

    Demographics Political outlook

    Female skewUltra Conservatives are well-informed,community-minded voters with strongopinions and views that reflect their

    conservative outlook. They have traditionalto conservative views on key issues ofemployment, immigration, healthcareand the environment, and even moreconservative on social issues.

    Largely White

    College graduate or more

    Many are retired

    Average age: 53

    Average HHI: $83,000

    Percent with kids in home: 35%

    Over-indexing brands by PoliticalPersonas segment

    Drive Buick-make automobile (175)

    Have a mutual fund with Fidelity Investments (155)

    Shop at Michaels stores (153)

    Eat Marzettis-brand salad dressing (151)

    Shop at Hallmark stores (149)

    Source: Experian Simmons

    On The Fence Liberals 16% of registered voters; 65% of registered Independents

    Demographics Political outlook

    Male skewOn the Fence Liberals have a middle-of-

    the-road to liberal outlook. While they

    dont have very strong feelings on most key

    political issues, they do have left-leaning

    attitudes on issues such as abortion.

    They are on the fence when it comes to

    healthcare, the economy, education and

    international.

    Largely White

    College graduate or more

    Employed

    Average age: 43

    Average HHI: $89,000

    Percent with kids in home: 40%

    Over-indexing brands by PoliticalPersonas segment

    Eat Cabot-brand natural cheese (Index: 171)

    Drive a Jeep-make vehicle (159)

    Shop at Citgo Quick Mart convenience store (157)

    Use Tidy Cat-brand kitty litter (149)

    Eat Ben & Jerrys-brand ice cream (148)

    Source: Experian Simmons

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    Green Traditionalists 8% of registered voters; 35% of registered Independents

    Demographics Political outlook

    Even male female

    Green Traditionals lean to the political right.

    Their attitudes towards abortion, social

    security, healthcare and religions all skewconservative. The environment is a key issue

    for this group as they are active participants

    in recycling programs and are concerned

    about pollution.

    Largely White

    College graduate or more

    Above average unemployed and retired

    Average age: 49

    Average HHI: $79,000

    Percent with kids in home: 36%

    Over-indexing brands by PoliticalPersonas segment

    Eat Polaner All Fruit-brand jam (163)

    Shop at Jo-Ann fabric and craft stores (161)

    Shop at Pier 1 Imports (154)

    Stay at Holiday Inn Express hotels (154)

    Own TomTom-brand GPS (151)

    Source: Experian Simmons

    Unconnected and Unregistered 69% of unregistered voters

    Demographics Political outlook

    Male skewBeing as unconnected as they are, this

    segment has no identifiable political slant.

    In fact, they have no strong feelings towards

    the environment, healthcare or social

    security, though they do lean left on issues

    like abortion and marijuana legalization.

    They skew more Hispanic than any

    segment.

    Diverse, above average Hispanic

    High school or less

    Employed or students

    Average age: 40

    Average HHI: $70,000

    Percent with kids in home: 36%

    Over-indexing brands by PoliticalPersonas segment

    Drink Rockstar-brand energy drinks (Index: 196)

    Use Axe-brand deodorant (158)

    Smoke Marlboro-brand cigarettes (151)

    Own Xbox video console (148)

    Eat Goya-brand packaged or canned foods (125)

    Source: Experian Simmons

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    informed but Unregistered 31% of unregistered voters

    Demographics Political outlook

    Female skewWhile not registered to vote, this segmentsmembers have very strong opinionsthat tend to lean more conservative,

    especially when it comes to abortion andlegalization of marijuana. Well-informedand aware of the issues, they are engagedin their communities and strive for a betterenvironment.

    Diverse, above average Hispanic

    Some college

    Unemployed or homemaker

    Average age: 46

    Average HHI: $61,000

    Percent with kids in home: 46%

    Over-indexing brands by PoliticalPersonas segment

    Eat Goya-brand packaged or canned foods (217)

    Wear Puma-brand sneakers (205)

    Use Aveeno-brand bar soap (182)

    Use S.O.S.-brand oven cleaning pads (173)

    Eat Frito-Lay-brand snack dip (129)

    Source: Experian Simmons

    Reach core constituents and swing voters via their favorite

    television programs

    An analysis of nearly 1,000 television programs* reveals those with the

    highest concentrations of viewers from the left, the right and the middle of

    the political spectrum for optimal targeting.

    Top 10 indexing television programs by political outlook

    Outlook: Conservative

    Rank Program Index

    1 Hallmark Channel: Hallmark Movie 120

    2 Discovery: Swamp Loggers 119

    3 TV Land: The Andy Griffith Show 118

    4 History: Swamp People 117

    5 Syndication: Cops 115

    6 Discovery: Man vs. Wild 113

    7 Syndication: Wheel of Fortune 113

    8 CBS: Blue Bloods 112

    9 CBS: The Mentalist 11210 History: Ice Road Truckers 111

    Source: Experian Simmons

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    Outlook: Liberal

    Rank Program Index

    1 Comedy Central: The Daily Show 212

    2 Comedy Central: The Colbert Report 201

    3 Fox: Glee 164

    4 E!: The Soup 155

    5 ABC: Modern Family 153

    6 NBC: The Office 147

    7 CBS: Late Show with David Letterman 142

    8 Comedy Central: Tosh.O 142

    9 NBC: Saturday Night Live 141

    10 Travel Channel: Anthony Bourdain: No Reservations 141

    Source: Experian Simmons

    Outlook: Middle of the road

    Rank Program Index

    1 In Syndication: Family Guy 126

    2 Fox: Family Guy 120

    3 In Syndication: Two & a Half Men 119

    4 TLC: Cake Boss 117

    5 Syndication: How I Met Your Mother 115

    6 HGTV: My First Place 115

    7 Adult Swim: King of the Hill 114

    8 HGTV: Holmes on Homes 114

    9 A&E: Dog the Bounty Hunter 114

    10 Spike: 1,000 Ways to Die 114

    Source: Experian Simmons

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    Empowermeaningfulcon

    INTERACTION

    Empower meaningful connections

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    A digital marketers foundation

    EMAIL

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    Email: a marketers foundation

    Key findings

    Peak Week, the Tuesday before Thanksgiving Day through Cyber

    Monday, revealed increased email transactional activity, provingproductive for many marketers.

    Dollar ($) offers were the most popular last holiday season (seen in

    29% of subject lines, sneaking past last years leader of percent (%)

    off campaigns (seen in 28% of subject lines).

    Fifty-two percent of organizations say email address is the most

    utilized piece of contact data.

    For brands that have email acquisition at the POS, 15 to 25% of their

    subscriber list is captured in-store.

    Subscribers respond well to words that make them feel special.

    Including the word exclusive in the subject line boosts unique open

    rates by 14% in promotional mailings.

    Revenue per email averages two times higher for Friends and

    Family campaigns.

    Biggest email marketing trends from 2011

    Although email has been a staple in digital marketers toolkits for some

    time now, 2011 was the year that people really took notice of its value within

    the digital ecosystem. After all, email is the center for all other channels and

    devices, connecting the lines of communication between customers and

    brands, and the social, mobile and Web outlets through which they interact.

    As a result, it continues to grow in usage and effectiveness, while driving

    more revenue and engagement for the brands that use it effectively.

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    2010 to 2011 YOY volume graph

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    Q4Q3Q2Q1

    22.5%

    25.4%

    30.3%

    12.9%

    2011 holiday snapshot

    Email marketers were extremely active all year. Overall email volume went

    up each quarter, and in the holiday season rose 13%.

    The 2011 holiday season had many marketers focusing on the critical week

    leading up to Black Friday and Cyber Monday Peak Week. Extendingmarketing activities to encompass more days during Peak Week has proved

    productive for many marketers, as the Tuesday before Thanksgiving Day

    through Cyber Monday revealed increased email transactional activity.

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    Peak week YOY volume was up 30%and transactions rose 20%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    Peak

    Week

    total

    Cybe

    rMon

    day

    Sund

    ay

    Satu

    rday

    BlackF

    riday

    Thanks

    giving

    Wednesday

    Tuesday

    32%

    61%

    At three days from send

    22%

    32%

    5%

    37%

    15%

    23%20%

    9%

    16%

    31%

    25%29%

    26%30%

    Volume sent Total transactions

    Other trends from the 2011 holiday season include the following:

    Dollar ($) offers were the most popular in the 2011 holiday season (seen

    in 29% of subject lines), sneaking past the 2010 leader of percent-off

    campaigns (seen in 28% of subject lines).

    Personalization in subject lines increased (31% overall), particularly in the

    last half of the season.

    Deeper discounts were offered through email more frequently. The

    percentage of campaigns offering 50% off was up 30% compared with

    the same time period in 2010, and campaigns offering 10% and

    20% off decreased.

    Three times as many campaigns had the word Facebook in the subject

    line compared to 2010.

    Flash sales continued to increase in popularity, with 31% more campaigns

    in 2011 versus the year before.

    Tip: If your goal is purely engagement or re engagement shorter flash sales

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    Using email segmentation to reach the New American Consumer

    The New American Consumer lives, behaves, communicates and interacts

    with brands, and the emails brands send them, much differently and

    discerningly than ever before.

    What does this mean for email marketers in 2012? There needs to be a focus

    on relevancy and engagement. To do this, analytics and structured testingare the key to enabling a focus on segmentation deep, strategic and well-

    planned segmentation.

    The great news for email marketers is that with time comes data. The

    challenge at hand is figuring out what to do with this data, particularly from

    a segmentation standpoint. In 2012, there are four major ways to approach

    making the most of the data to communicate with customers based on their

    unique wants and needs:

    Email behaviors Has this person opened my emails in the last 60

    days? If so, for how long? And on what device? Which communications

    are most engaging, and how do I maintain this engagement?

    Transactions On what day of week does my company experience the

    highest email transaction rates? Have any offline/in-store transactions

    been made as a result of my email marketing? Which types of offers/

    messages drive the most transactions?Web analytics How many times has someone clicked on my emails

    before they actually purchased? Are there items left in their shopping

    carts about which I should remind them? Have they browsed but not

    purchased and can I re-engage them? Which types of emails drive higher

    click-throughs and engagement on my site?

    Social media information What brands does this customer like on

    Facebook? Have they mentioned my company, or any of our products, on

    Twitter recently? What did they say? Which customers exert more socialinfluence, and can I leverage them to promote my brand?

    Tip: Marketers should include and consider customer behavior across all

    digital platforms, from Web to mobile, when identifying audience segments and

    crafting the content of their campaigns.

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    What email marketers should focus on in 2012

    As technology advances at a rapid pace and customers adapt, marketers

    have so much to keep in mind. Considering that marketers are focused

    more on cross-channel engagement, we have concentrated on highlighting

    key benchmarks, trends and tips surrounding the three key areas:

    connecting, engaging and empowering customers.

    CONNECT

    Making that initial connection through email first requires the acquisition

    of customer information. Fortunately for marketers, there is a plethora of

    ways to do this. In a 2011 study by Experian QAS, 60% of respondents stated

    they use some form of email verification, and 52% of organizations say

    email address is the most utilized piece of contact data.11 Top connecting

    strategies for 2012 include:

    Point of sale (POS) email acquisition

    Online

    Allowing opt-in during the online checkout process is a popular

    acquisition tactic among retailers looking to increase subscriber list sizes.

    Including email sign-up on the companys Facebook page can help amass

    a wealth of subscribers.

    Tip:To mitigate deliverability and reputation challenges, Experian CheetahMail

    recommendsthatatonlinePOS,retailersexplicitlystatethatthesubscriber

    will be opted into marketing communications and a confirmed opt-in message

    should also be triggered in real time.

    In-store email acquisition

    For brands that have email acquisition at the POS, 15 to 25% of theirsubscriber list is captured in-store. Marketers should consider all of the

    following tactics when acquiring email addresses in stores:

    Mobile QR codes displayed on store signage QR (quick response)

    codes can be a great tool directing users to a mobile-optimized

    acquisition form for grabbing new email subscribers on the go.

    Text to subscribe/SMS program Regular SMS campaigns allow

    customers to sign up to receive text alerts by phone. In addition to

    using QR codes, linking the first SMS communication back to a Web-

    based form for email collection can work wonders for acquisition. SMS

    subscribers can text in an email address as an additional method of

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    Case study: Kenneth Cole uses iPad forms for subscriber

    acquisition on the go

    Experian CheetahMail and Kenneth Cole, a leading multi-channel retailer

    of fashion, footwear and handbags, launched an iPad form with the goal of

    collecting more email subscribers at an upcoming event.

    CheetahMail set up an online form for the Kenneth Cole booth at the

    Lucky Shops Event.

    Foot traffic was asked to enter a drawing via an iPad to win a shopping

    spree at a Kenneth Cole store.

    Entries were also signed up to receive Kenneth Cole email.

    Eighty-seven percent of people who entered the sweeps signed up for

    email and 34% made purchases after the event.

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    Increasing email reach via data overlay

    Acquiring an email address is just a small, yet vital, step in making the

    connection with new customers. Using data overlays, such as lifestyle

    segmentation systems, on top of those email addresses can better ensure

    that your message sticks. Heres how:

    Profile the customer Use segmentation systems, such as

    Experians Mosaic USA Consumer Lifestyle Segmentation codes, to

    learn about the socioeconomic attributes, lifestyle characteristics and

    attitudes of your customers.

    Set goals Identify the codes to acquire (top customers, engaged

    clients, brand ambassadors, people who share, those who opted in

    through the Facebook page, etc.).

    Think outside the inbox Learn the Websites that customers visitto establish partnerships and implement co-marketing arrangements or

    tactics to drive Website traffic.

    Test Use the segments to test email messaging, creative design and

    subject lines based on audience segments.

    Tip: Focus on gathering more data through online polls and email creative that

    have clear calls to action.

    Optimizing subject lines

    To make a connection through email, marketers must ensure their subject

    lines are timely, compelling and relevant. Testing has shown that shorter

    subject lines perform better, as they tend to stand apart visually from the

    longer lines and are therefore more enticing to read.

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    Tip: Consider implementing a structured subject line test plan to determine the

    best way to speak to subscribers, understand what they are looking for, improve

    open rates and subsequently improve the number of clicks and transactions

    generated through email.

    Keywords and phrases

    Subscribers respond well to words that make them feel special. Including

    the word exclusive in the subject line boosts unique open rates by

    14% in promotional mailings (15.9% unique open rate with exclusive

    and 14% without).

    The phrases top 10 or top 5 are also popular. For example, Top 10 looks

    for fall would garner more opens than Open this email for ways to lookgreat this fall season. People are also intrigued by subject lines that offer

    a quiz-like challenge, such as Do you know the top 5 vacation spots? or

    The top 5 vacation spots are Subject lines with top 10 or top 5 have

    unique open rates that are 13% higher than promotional mailings without

    those phrases (16.1% with top and 14.3% without).

    Experian CheetahMail analyzed the length and content of subject lines mailed

    from January through May 2011 from more than 450 brands acrossall industries.

    ENGAGE

    More than 80% of email marketers send the same content to all subscribers.

    In 2012, marketers will try to change this and segment more

    continuing to strive to reach the highest levels of customer engagement and

    interaction. Once a connection with a customer is made, there are a number

    of proven strategies for nurturing the relationship, driving conversions and

    fostering conversations:

    Email can play an important role in optimizing customer loyalty

    Many loyalty-focused campaigns span the entire customer life cycle, from

    the initial entry to program renewal notifications and reminder messages.

    They also tend to perform better than standard promotional mailings in

    terms of customer response and revenue.

    Emails targeted to current loyalty program members have 40% higher open

    rates; 22% higher click rates; and transaction rates and revenue per email

    that are 29% and 11% higher.

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    Loyalty mailings generate higher transactionrates and revenue per email

    0.00%

    0.02%

    0.04%

    0.06%

    0.08%

    0.10%

    $0.15

    $0.16

    $0.17

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    Non-loyalty

    promotional mailings

    Loyalty

    Transactionr

    ate

    Revenue per email

    0.09%

    $0.18 0.07%

    $0.17

    Different types of loyalty emails perform wellListed below are nine mailing types that collectively provide a platform for

    achieving high loyalty program results.

    Loyalty mailings provide opportunities for outstandingtransaction rates and revenue per email

    0 0%

    0.2%

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    0.6%

    0.8%

    1.0%

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    1.4%

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    0.1% 0.1%

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    $0.17 $0.11

    $1.26 $1.62

    $6.81

    $1.82

    $3.86

    $0.80

    $1.60

    Transaction rate

    Revenue per email

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    Use a single-column layout for easy scrolling.

    Be aware of size and positioning of all calls to action.

    Device

    Media Query (MQ) is one option to optimize emails for most modern mobile

    operating systems. MQ is a cascading style sheet (CSS) code that outlinesspecific parameters to either resize or hide certain areas of the email.

    Designing with MQ in mind will enable use of one single template that is

    optimized when viewed within mobile email applications as well as the Web

    version viewed on a mobile device or tablet.

    Tip: As an additional option for clients with existing mobile capabilities,

    CheetahMobile can assist in launching location-based SMS programs to

    provide additional targeting for loyalty programs, as well as more relevant offers

    to subscribers.

    Customer stories in email

    Marketers know how powerful customer testimonials can be. More than

    ever, customers are seeking out user reviews, ratings and social media

    commentary to validate their actions. Consider incorporating the following

    in email campaigns:

    Social media posts

    Use fan commentary from the Facebook page in the copy of emails to

    support descriptions of products and services.

    Ratings and reviews

    Use these emails to continue a dialogue with customers and engage new

    visitors. Ratings and Reviews mailings have two times the total open ratesand 39% higher click rates than promotional mailings.

    Furthermore, Ratings and Reviews emails that dynamically show the

    products to be reviewed have 13% higher click rates and double the

    transaction rates and revenue per email when compared to not displaying

    the content dynamically.13

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    Case study: Horchow asks questions and shares the answers

    Asking for preferences or feedback allows companies to tailor product

    development and other company decisions for current and true customer

    needs. Experian CheetahMail and Horchow are a perfect example of this

    strategy, using social media feedback in email and creating a campaignbuilt around the all-powerful tactic every marketer aims to create:

    word-of-mouth.

    Subject line: Facebook favorites: Our fans speak out

    Customer comments from Facebook are included in the email template

    Encourages email and social media interaction

    Twenty-six percent lift in open rate

    Tip: Are your customers fans of your competitors? Leverage this knowledge

    and insight to refine messaging in email or send a special promotion/offer to

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    The next era of dynamic content: social, local and real time

    What if email could be all three of the above? Companies such as Movable

    Ink have the technology to make this possible. There is a new era of

    dynamic content today, and some of the most progressive digital marketers

    have already jumped on the bandwagon. Listed below are just some of the

    value-adds this type of technology creates:

    Persuade using social proof, i.e., Friends of yours have bought the

    same deal.

    Use real-time elements like time left in deal to create a sense

    of urgency.

    Include coupons that dynamically count down to expiration when the

    email is opened also creating a sense of urgency.

    Geo-target ads based on where a subscriber opens the email.

    Engagement analytics

    Who opens an email campaign? Did they use their iPhone or check Outlook

    on their desktop? Did they print the in-store coupon? And furthermore,

    someone opened your email, but did they actually read it? With recent

    innovations in email marketing analytics (from providers such as Litmus),

    this information is at a marketers fingertips.

    Engagement for email analytics is based on the amount of time a

    subscriber spends on an open email. The metrics below indicate that the

    strongest engagement is on a desktop, followed by mobile devices, then

    Webmail clients.

    Read Seven-plus seconds spent on the email.

    Skimmed Two to seven seconds spent on the email.

    Glanced/deleted Less than two seconds spent on the email.

    Read Skimmed Glanced/deleted

    Desktop clients 55% 28% 17%

    Mobile clients 49% 22% 29%

    Webmail clients 26% 4% 70%

    Source: Experian CheetahMail partner, Litmus, analyses of ~760 million email users, April 2011.

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    Inactive: no opens or clicks

    Subscriber who has never engaged with email (no opens, no clicks)

    1. Identify time on file. If the subscriber is new (signed up within 30 to 60

    days), consider sending a welcome series or other high touch offer to

    solicit engagement. Include prominent placement for users to update

    their preferences.

    2. If the subscriber is 60 days to 12 months old, look at activity outside

    of email (transactions, Web browsing behavior, social media activity) to

    determine further segmentation and a contact strategy plan.

    3. After 12 months of inactivity, create a re-engagement campaign or series,

    such as we miss you or we havent heard from you in a while with a

    special offer to encourage engagement.

    4. A subscriber with no opens, no clicks and no transactions in the past 24months should be sent a re-confirmation message or series to get them

    to re-commit to the brand. Consider alternative options for them to opt-in

    for other programs such as through SMS or social in case email is not, or

    is no longer, their communication channel of choice.

    Tip: We Miss You campaigns have proved to be effective in reactivating

    recently lapsed buyers. This Eastern Mountain Sports campaign targetedsubscribers who were inactive for 12 or more months and successfully

    reactivated 2.3% of the file.

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    EMPOWER

    The connection with subscribers has been made, and they have engaged

    with messages that are relevant to them, but are they empowered with

    emails that they share and talk about emails that promote relationship

    growth and deep customer loyalty? By giving customers the tools to be

    brand advocates, they can organically expand the reach and impact of

    marketing messages. Empowerment is the pinnacle of email marketing

    success, and for any digital marketer, there are a number of ways to reach

    this state.

    Enable sharing

    Empowering customers with emails they can share with their friends,

    families and social networks has never been easier and the payoff can be

    immense. Some of the latest trends and tactics include:

    Be friendly

    Make subscribers feel special by including them in Frie